Update on Australian Government Response to COVID-19
$270 billion investment in Defence capability
Prime Minister Scott Morrison and Defence Minister Linda Reynolds have announced a major escalation in Australia’s investment in long-range defence strike capabilities. The new investments cover air, maritime and land assets, including advanced naval strike capability and the acquisition of long-range rocket artillery and missile systems. Under the plan, the Federal Government will invest $270 billion in capability investment over the next decade, up from the $195 billion 10-year commitment following the 2016 Defence White Paper.
Record investment for cyber security
On the heels of a major cyber-attack in mid-June, the Federal Government has announced the nation’s largest-ever investment in cyber security committing $1.35 billion over the next decade to enhance the capabilities of the Australian Signals Directorate and the Australian Cyber Security Centre. PM Scott Morrison said malicious cyber activity against Australia was increasing in scale, frequency and sophistication. The expenditure package is aimed at identifying more cyber threats, disrupting more foreign cybercriminals and building partnerships with industry and government.
Victoria re-imposes COVID-19 lockdowns
As Victoria’s coronavirus daily infection rates soar again, the Andrews Government has reimposed local lockdowns in 10 designated postcodes in the west and north of Melbourne. For four weeks from 1 July, residents living in those postcodes can only leave their homes to work or shop, shop for essential items, exercise or provide personal care. In addition, international air flights in and out of Melbourne have been diverted out of local airports for two weeks; meanwhile, New South Wales has retained its open border across the Murray River but imposed entry restrictions on Victorian visitors.
Gradual recovery in payroll jobs
In a glimmer of good economic news, the number of payroll jobs increased by one per cent between mid-May and mid-June, according to the Australian Bureau of Statistics. The ABS said the recovery in payroll jobs between mid-April and mid-June represented around 30 per cent of the jobs initially lost under the COVID-19 outbreak. It said the number of payroll jobs was still 6.4 per cent below mid-March. Western Australia had the largest increase (2.3 per cent) in jobs between mid-May and mid-June, while overall, accommodation and food services jobs recovered most as restrictions eased.
Slump in consumption imports, apartment approvals
Imports into Australia of goods and services fell by six per cent to $27.7 billion in May as COVID-19 restrictions remained in place, the ABS has found. Exports of goods and services also fell, by four per cent, to $35.7 billion, leaving a surplus of more than $8 billion in international goods and services. Reflecting the market restrictions, imports of consumption goods fell by 14 per cent during the month. Meanwhile, in another ominous portent for the economy, the ABS has reported that approvals for new apartments slumped by almost 35 per cent in May.
Feds roll out major road funding packages
The Federal Government is banking on a surge in transport infrastructure investment to help lead the post COVID-19 economic recovery, with a series of announcements in late June on road and infrastructure projects. Prime Minister Scott Morrison said that in past eight months, the Government had brought forward or provided additional total funding of more than $6 billion for projects co-funded with five states and the territories.
Superannuation payout reaches $17 billion
More than $17 billion has been withdrawn from Australian’s superannuation accounts under the early-release scheme, according to the Australian Prudential Regulation Authority APRA figures up to June 21 show that more than 2.4 million applications had been received, with average payouts of $7,500. It also said that high volumes of applications were expected in early July for the second tranche of early-release superannuation.